by Calculated Risk on 9/12/2010 12:18:00 PM
Sunday, September 12, 2010
Report: Bank regulators reach agreement on Basel III capital requirements
The details will be released later today, but here is an overview from the Financial Times: Regulators agree to reforms on bank capital
Basel III ... is expected to include a new minimum core tier one ratio for banks worldwide. ... The current minimum is 2 per cent.Here is an article from the WSJ: Bank Regulators Reach Deal on New Capital Rules
[The] proposal [was] for a new minimum of 4½ per cent [with] an additional buffer of 2½ per cent ... Banks within the buffer zone would face restrictions on their ability to pay dividends and discretionary bonuses.
excerpt with permission
The details will be released later, and the agreement is expected to be approved in November. This will probably lead to more banks raising capital.